US Labor Department obtains court-appointed independent fiduciary for retirement plan of defunct Charleston, W.Va., mental hospital

CHARLESTON, W.Va. – The U.S. Department of Labor has obtained a court judgment appointing an independent fiduciary to manage the retirement savings plan of Shawnee Hills Inc., a defunct mental health hospital formerly located in Charleston.

Under the judgment, entered in the U.S. District Court for the Southern District of West Virginia, G Trust of Topeka, Kan., was appointed as the independent fiduciary with authority to manage the plan, distribute assets to plan participants and beneficiaries, and terminate the plan.

The judgment resolves a lawsuit filed by the Labor Department alleging that Shawnee Hills had violated the Employee Retirement Income Security Act. The suit charged that after the company ceased operations in 2002 and filed for Chapter 7 bankruptcy, the fiduciaries failed to terminate the plan and distribute its assets.

"When companies go out of business, they have a legal obligation to ensure the proper handling of employment retirement plans," said Mabel Capolongo, regional director of the department's Employee Benefits Security Administration. "We took this legal action to ensure that the plan is properly managed and participants will be paid their retirement assets."

Under a separate order, the U.S. Bankruptcy Court for the Southern District of West Virginia has authorized the transfer of $355,091 from the Chapter 7 bankruptcy estate back to the plan. The money belonged to the retirement plan that had been previously swept into the Shawnee Hill bankruptcy estate.

The suit resulted from an investigation conducted by EBSA's district office in Washington, D.C. Employers and workers can contact that office at 202-693-8700 or toll-free at 866-444-3272 for help with any problems relating to private sector pension and health plans. Additional information can be found at http://www.dol.gov/ebsa. The case was litigated by the Labor Department's Philadelphia Regional Solicitor's Office.

Solis v. Shawnee Hills Inc.
Civil Action Number: 2:10-cv-1235

# # #

U.S. Department of Labor releases are accessible on the Internet at http://www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at 202-693-7828 or TTY 202-693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit http://www.dol.gov/compliance.